Further rate rise in August say experts

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A unanimous vote against raising interest rates at the Bank of England’s Monetary Policy Committee meeting earlier this month does not rule out the strong possibility of another 0.25 per cent rate rise as soon as August, according to analysts this morning.

The nine members of the MPC decided to keep rates at 4.5 per cent, following two months of consecutive 0.25 per cent rises in May and June had seemed to have the desired effect in keeping inflation below target for most of the forecast period.

According to the committee’s minutes, published this morning, an unexpected rate increase in